Argentine President Javier Milei has abruptly dismantled a task force dedicated to probing the notorious LIBRA cryptocurrency debacle. This move, enacted on May 19 through a decree co-signed by Justice Minister Mariano Cúneo Libarona, has raised eyebrows and provoked criticism from political opponents eager to launch an investigative commission as early as May 20. The Investigative Task Unit (ITU), initially established in February following a whirlwind of controversy, is now officially disbanded, as confirmed by documents from the government.
Unraveling the LIBRA Scandal
LIBRA, a cryptocurrency project once promoted by Milei on his social media platform, experienced a meteoric rise and catastrophic fall. Initially valued at nearly $5 billion, the token’s value soared to $5 before plummeting to zero, leaving investors in dismay. The rapid collapse bore the hallmarks of a classic pump-and-dump scheme, prompting allegations of market manipulation and insider trading. Milei found himself at the center of the storm, with accusations threatening his political standing. This echoes similar issues seen in Movement Labs’ token-dumping scandal, where allegations of market manipulation have also surfaced.
The president, however, has maintained his innocence. In a recent interview on Todo Noticias, Milei asserted, “I didn’t promote it, I shared it,” suggesting his intentions were purely to inform. “I saw a tool that could finance entrepreneurs, and I spread the word. I acted in good faith and took a hit,” he explained, seeking to distance himself from the financial havoc wreaked on investors.
The Political Fallout
The dissolution of the task force, despite the ongoing pressure from opposition factions, underscores the controversy’s political ramifications. Milei’s endorsement of LIBRA, which initially propelled the token to unprecedented heights, has now left a significant dent in his credibility. Polls reveal that nearly 58% of Argentinians have lost trust in Milei due to his involvement in the scandal.
Critics argue that the president’s decision to dismantle the ITU prematurely may hinder efforts to fully unravel the complexities of the LIBRA fallout. “This is not just about one failed project,” stated Claudia Fernández, a legal analyst specializing in financial regulations. “It’s about ensuring transparency and accountability in the burgeoning crypto space.”
Investor Impact
While Milei downplayed the impact of the LIBRA crash, claiming that only a small number of Argentinians were affected, blockchain data tells a different story. Analysis from Cointelegraph indicates that more than 15,000 wallets experienced significant financial outcomes, with over 86% suffering losses totaling $251 million. Contrary to Milei’s assertions, the damage was extensive and far-reaching, affecting investors across multiple continents.
The LIBRA debacle has reignited debates about regulatory oversight in the cryptocurrency market. “The LIBRA case serves as a cautionary tale,” remarked Juan Torres, a cryptocurrency market strategist. “It highlights the need for stringent regulatory frameworks to protect investors from fraudulent schemes.” This sentiment is echoed in our coverage of Movement’s token-dump scandal, which underscores the necessity for robust regulations.
Looking Ahead
As the dust settles on the dismantling of the task force, questions linger about the future of cryptocurrency regulation in Argentina. Can the nation restore investor confidence, or will this scandal leave lasting scars? The opposition’s call for a new investigative commission suggests the story is far from over, as stakeholders seek to navigate the turbulent waters of crypto governance.
The LIBRA saga continues to unfold, with many watching to see how Argentina—and indeed the broader cryptocurrency community—will respond to such a high-profile controversy. As the world grapples with the challenges of integrating digital assets into existing financial systems, the lessons learned from LIBRA could serve as a crucial guidepost for future regulatory efforts.
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This article is based on: Argentina's Milei shuts down task force investigating LIBRA scandal
Further Reading
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
